At a glance
LOCT charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $10.7M in assets, the 8th largest of that group; it paid 5.02% of its price in distributions over the past 12 months, monthly. Over the past year it returned +4.9% with distributions reinvested, the weakest of those 8 funds; over three years it returned +6.0% a year.
The short version
Innovator Premium Income 15 Buffer ETF - October (LOCT) is an actively managed ETF that holds US Treasury bills and FLEX options (customizable listed options) on the SPDR S&P 500 ETF Trust (SPY). It aims to pay preset monthly income and cushion the first 15% of SPY losses over each October-to-September period, but it gets none of SPY's gains. Its 0.79% yearly expense ratio is below the 0.86% average of comparable buffer funds.
Price history
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LOCT +4.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| LOCT official prospectus, to Dec 31, 2024 | — | +5.60% | — | — | — | +6.23% |
| LOCT price data to Oct 27, 2026 | +4.1% | +4.9% | +6.0% | — | — | +5.7% |
- Over the year to Oct 27, 2026, LOCT returned +4.9%, 8th of 8 among similar funds.
- Its worst full calendar year was 2024 (+5.1%); its best was 2025 (+5.5%).
- The deepest fall in its price history was 4.7% (Mar 25, 2025 to Apr 8, 2025), recovered by May 9, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +4.1% | — |
| 2025 | +5.5% | +5.60% |
| 2024 | +5.1% | +5.30% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.9000 | |
| 2025 | $1.2000 | -18.4% |
| 2024 | $1.4700 |
What's inside
As of Jul 31, 2026, the fund held 2 securities; the ten largest made up 100.17% of assets.
| Holding | Weight | |
|---|---|---|
| TREASURY BILL Bonds and notes | 99.74% | |
| TREASURY BILL Bonds and notes | 0.43% |
By country
United States 100.17%By issuer
US Treasury 100.17%The bonds mature in 0.2 years on average (weighted by size), with an average coupon of 0%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $3.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.60%, +0.33%, +0.40%.
How it works
LOCT is an actively managed Innovator ETF, not an index fund. It holds US Treasury bills (short-term government debt) and FLEX options, customizable exchange-listed contracts tied to the SPDR S&P 500 ETF Trust (SPY). As of July 31, 2026, Treasury bills made up about 100% of net assets, with an average maturity of about 0.2 years. One SPY option was valued at about -0.13% of assets, a sign the fund sold it. In effect, the fund is paid to take on SPY losses beyond 15%.
It runs in yearly outcome periods, October 1 to September 30. At each start, it sets a defined distribution rate from its net asset value (NAV, the per-share value of its holdings) and market conditions. For the period ending September 30, 2026, that rate was 5.97% before fees. The income, paid monthly, comes from Treasury bill interest and option premiums (upfront payments).
Each period's buffer aims to shield holders from the first 15% of SPY's losses. If SPY rises, or falls 15% or less, the fund is designed to end at its starting NAV plus distributions. Deeper losses pass through one-for-one, and the fund gets none of SPY's gains. Results count only at period end, so investors who get in or out mid-period can see different outcomes.
What it really costs
- LOCT charges 0.79% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $81 in the first year and $978 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| LOCT | $81 | $252 | $439 | $978 |
Structure and tax notes
- Organized as a unit investment trust: it cannot lend out its securities or reinvest dividends between payouts, which can create a small drag versus similar open-end ETFs.
- Uses options to limit losses within a range (the buffer) in exchange for a cap on gains over each outcome period; results depend on when you buy relative to the period start.
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its main job is paying preset monthly income from Treasury bill interest and option premiums, with a 15% buffer against SPY losses but no share of SPY's gains.
LOCT may add monthly income with small price swings. Its trailing 12-month yield was 5.02% as of October 27, 2026, and its expense ratio is 0.79%. It launched in 2023, so it has no record through the 2008, 2020 or 2022 downturns. Its prospectus shows gains in both full calendar years: 5.3% in 2024 and 5.6% in 2025. Its deepest drop, 4.7% from March 25 to April 8, 2025, was recovered by May 9, 2025.
The catch: the buffer only covers SPY losses up to 15%, measured over a full October-to-September period. In a deeper fall, distributions are designed to continue, but share value drops one-for-one with the extra losses, and cashing out mid-period can lock in a loss. It gets no stock gains, and its income rate resets each October. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking monthly payments from Treasury bill interest and SPY option premiums; the trailing yield was 5.02% as of October 27, 2026.
- Investors able to invest near October 1 and hold to September 30, the full period the 15% buffer and set income are built around.
- Those willing to give up all of SPY's gains for steadier results; the deepest drop since launch was 4.7%, recovered in about a month.
Look elsewhere if
- Growth seekers: LOCT gets none of SPY's gains, and its 4.9% one-year return trailed all seven comparison buffer funds as of October 27, 2026.
- Anyone wanting protection against deep crashes: SPY losses beyond 15% pass through one-for-one, and the buffer is measured only at each period's end.
- Those wary of tiny funds: assets were about $10.7 million as of July 31, 2026, after roughly $3 million of net outflows over three months.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| LOCT this fund | 0.79% | $10.7M | +4.9% | +6.0% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does LOCT pay monthly dividends?
Yes. LOCT pays distributions monthly: shareholders of record on the last business day of each month are paid on the first business day of the next month. The payments come from Treasury bill interest and option premiums. For the October 1, 2025, to September 30, 2026, outcome period, the fund set a defined distribution rate of 5.97% before fees. Its trailing 12-month yield was 5.02% ($1.20 per share) as of October 27, 2026. The rate resets each October and can rise or fall.
How does LOCT's buffer work?
LOCT's buffer is designed to absorb the first 15% of losses in the SPDR S&P 500 ETF Trust (SPY) over each outcome period, which runs from October 1 to September 30. If SPY ends the period up, or down 15% or less, LOCT aims to return its starting net asset value (NAV) plus distributions. Losses beyond 15% pass to holders one-for-one. The buffer is measured only at period end, and investors who join mid-period may get more or less protection. There is no guarantee it will succeed.
Can you lose money in LOCT?
Yes. LOCT is not insured or guaranteed, and its buffer covers only the first 15% of losses in the SPDR S&P 500 ETF Trust over a full October-to-September outcome period. Holders bear deeper losses one-for-one. Prices also move within a period: the fund's deepest drop was 4.7%, from March 25 to April 8, 2025, and it had recovered by May 9, 2025. Exiting mid-period, or investing after a period starts, can change results. Launched in 2023, it has no record from the 2008, 2020 or 2022 downturns.
What's the difference between LOCT and PJAN?
The main difference is upside. Both are Innovator buffer ETFs with a 0.79% expense ratio, but LOCT is designed to get none of the SPDR S&P 500 ETF Trust's gains, trading them for preset monthly income. Buffer funds such as PJAN typically aim to capture stock gains up to a cap. Over the year to October 27, 2026, PJAN returned 10.5% and LOCT 4.9%. PJAN is also far larger: about $1.4 billion in assets versus $10.7 million for LOCT, as of July 31, 2026.
What is LOCT's expense ratio?
LOCT's expense ratio is 0.79% a year, according to its prospectus filed February 27, 2026, and all of it is the management fee. In the SEC's standard example, an investor with $10,000 earning 5% a year would pay about $81 in costs over one year, $252 over three, $439 over five and $978 over ten. That's below the 0.86% average of the seven buffer funds it's compared with and matches Innovator's PJAN and PDEC. FT Vest's BUFR and BUFD charge 0.95%.